Buying a Home: Five Questions to Ask Yourself

Buying a Home: Five Questions to Ask Yourself

Exciting, nerve-wracking, stressful, and wonderful – buying a home is all of those, and more. Borrowing thousands of dollars to buy a place to live, to create a home sweet home, is not something you should take lightly. It is a financial transaction that can have long-lasting effects, both good and bad, depending on your ability to pay back that mortgage.

Regardless of whether you are buying your first home or your third, before you jump into the fray, make sure you ask yourself these questions so that you can be sure that buying a home is the right decision for you:

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Should I buy or rent?: This may seem like a silly question, but it is a fair one to ask yourself. Why do you want to buy a home? If you live in a high cost of living area, younger people may have a mortgage for a long, long time, which may not be desirable. If you are older, you may want access to cash for health or lifestyle reasons. But having your own home brings pride of ownership, more control over your surroundings, and greatly reduces your cost of living once you have paid off your mortgage. Decide what best suits your needs, wants, and finances.

Where do I start?: If it has been a while since you were in the real estate scene, you may need a refresher about what you need to do. First, take a look at your finances to see if they are in good shape. This includes making sure you are paying off your credit cards on time and in full, having steady employment, ensuring you have sufficient savings for moving, closing costs, home appraisals, and more. Get pre-approved from a lender such as Shamrock Financial to see how much you may be allowed to borrow and to show that you are serious. Also, ask your lender to look at your finances to see which areas, such as your credit score, that you can improve – reach for that financial sky!

How do I know if the home is a good value?: Well, that’s difficult to say. You could get a cheaper house, but it may need fixing up. And if you’re not Mr. or Ms. Fixit, then it is not a good deal. You could pay a lot for a house, but that means a large mortgage. But if you have a good income or get a lower interest rate, then maybe it is not so bad. Ultimately, you need to know if you can afford your payments comfortably, given your other expenses.

Can I skip the home inspection?: Well, you can, but do you want to? After all of the expenses, insurance, costs, and fees, you might feel that the home inspection is a place where you could save a little money. But that bit of “little money” could save you thousands in the end. Do you know about local building codes? Do you know what to look for in an attic? Can you see the hints that a roof needs to repaired? If you could save yourself from buying a house that is not in great condition – why wouldn’t you? Get that home inspection!

Can I change my mind about buying a home?: Yes, you can. But you need to know some of the finer points. If you don’t have a good reason to back out of a transaction, you may not get back the money you put down to secure the offer in the first place. Make sure you are serious about a home before putting down that money. Next, in your offer, you can make your transaction subject to the details you find out in the home inspection. For example, if you really don’t want a home that the inspectors says needs serious foundation work, you can walk away unscathed. Finally, you can also back out if mortgage lender doesn’t think the property is worth what you offered for it. But whatever you do, don’t back out on a whim – buying a home is a serious transaction for everyone involved.

Have Questions? Shamrock Financial Has Answers

When you are thinking about buying a home, you can get overwhelmed with the process. So many questions! But Shamrock can help you navigate your way through to a safe port. Ask us about mortgages, the process, or anything else that is on your mind. We will give you a professional answer based on decades of experience – and you will also get peace of mind.